Guitammer Second Quarter Revenue Increases 25% To $428,183 - Gross Profit Rises 27%- Gross Margins increase to 42.9% -

- Increased Worldwide Deployment of "4D" ButtKicker® Movie Theater Seats -

WESTERVILLE, Ohio, Aug. 14, 2013 /PRNewswire/ -- The Guitammer Company (OTC QB: GTMM), a leader in low frequency sound and creator of the award-winning line of ButtKicker®-brand low frequency audio transducers that provide an immersive entertainment experience for audiences, today announced second quarter 2013 revenue rose to $428,183, which is an increase of 25% compared to second quarter of 2012.  The higher revenue combined with an 800 basis point improvement in gross margin to 42.9% drove a 27% year-over-year increase in gross profit for the three months ended June 30, 2013. 

2013 Second Quarter Financial Highlights and Recent Developments

  • Revenues rose 25% year-over-year to approximately $428,000 and gross profit increased 27% to approximately $184,000, reflecting an 800 basis point gross margin improvement to 42.9%.
  • Reflecting previously extinguished debt, interest expense declined 40.5% or approximately $31,500 for the quarter.  Net loss increased $28,679 for the three months ended June 30, 2013 as compared to the three months ended June 30, 2012 due to an increase in non-cash employee stock option plan of approximately $29,000.
  • Received a total of $685,625 in equity investments in the second quarter 2013 and an additional $50,000 secured by July 12, 2013.  Year-to-date, Guitammer has raised $985,925 in equity.
  • Total current assets were $1,196,365 at June 30, 2013, an increase of $335,328 or 39% compared to current assets of $861,037 as of December 31, 2012.
  • Working capital increased $426,623 for the three months ended June 30, 2013 as compared to the three months ended March 31, 2013.
  • Secured the ninth and tenth theater installations with Sichuan Lumiere Cinema Co. Ltd. (Lumiere Pavilions) of Beijing, China and increased its ButtKicker® deployment in an existing installation bringing the total number of ButtKicker enabled "4D" seats to almost 1,900 in ten locations throughout China.
  • Entered into a Joint Marketing Agreement with Digital Cinema Destinations Corp. to add ButtKicker seats to the majority of their Solon, OH location and test a joint marketing plan. Installation has begun and is expected to be finished by early September.
  • Partnered with Warner Brothers for this Summer's Release of "Warner Bros. Pictures and Legendary Pictures Pacific Rim" by Oscar® nominee director Guillermo del Toro.
  • Established a worldwide joint marketing relationship with Obutto, a leading manufacturer of gaming cockpits, offering ButtKicker brand products to gamers, simulation racers and flight simulation customers throughout the North America, Europe and mainland China.
  • Widened live in-arena game testing of the ButtKicker Live! broadcast technology with a major sports league to include two potential broadcast partners.

Commenting on the second quarter results, Mark Luden, President of Guitammer stated, "We're pleased to see our core ButtKicker brand hardware business regain its growth trajectory while maintaining our gross margins.

Our deployment of "4D" enabled movie theater seats continues to grow. We expect to release our first ever in-theater onscreen commercial in September designed to introduce ButtKicker brand home products to the theater audience.

And we are pleased with the private placement equity we've raised this year in anticipation of the initial deployment of our patented broadcast technology, ButtKicker Live! . We expect to have more information available about this in the coming months."

To learn more about the Company's business including its business model for monetizing ButtKicker Live!, please see our new corporate video at: http://guitammer.com/corporate_presentation.html

About The Guitammer Company
The Guitammer Company, based in Westerville, Ohio, is a leader in low frequency sound products and technology.  Its innovative and award-winning line of patented ButtKicker®-brand low frequency audio transducers let users feel low-frequency sound (bass). ButtKicker® brand products are used around the world by leading entertainment and theater companies such as Alamo Drafthouse, IMAX, Disney and Lumiere Pavilions in movie theaters and attractions; by world-famous musicians; and in home theaters, by consumers for video games, simulators and car audio. ButtKicker® brand products are distributed by Pearl Drums for musicians under the trade name, "Pearl's Throne Thumper by ButtKicker".  ButtKicker® brand products' patented design makes them musically accurate, powerful and virtually indestructible. 

The Guitammer Company's newly patented broadcast technology, ButtKicker LIVE!®, enables the excitement, impact and feeling of sporting events to broadcast along with the sound and video. ButtKicker LIVE!® puts you into the action, whether you're at home or at the event.  ButtKicker Live!® technology is available for cable, satellite, fiber optic, IPTV and over-the-air broadcast and has been successfully tested with several major content (sports) providers.  ButtKicker® and ButtKicker Live!® are registered trademarks of The Guitammer Company. 

For additional information on The Guitammer Company and detailed product information, visit www.guitammer.com  and www.thebuttkicker.com  

To like our Facebook page or follow us on Twitter for company updates, visit

facebook.com/thebuttkicker
twitter.com/thebuttkicker   

Safe Harbor:

This letter contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby.  Investors are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation, the ability of the Company to successfully implement its turnaround strategy, changes in costs of raw materials, labor, and employee benefits, as well as general market conditions, competition and pricing.  Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this letter will prove to be accurate.  In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as representation by the Company or any other person that the objectives and plans of the Company will be achieved.  In assessing forward-looking statements included herein, readers are urged to carefully read those statements. When used in the Annual Report on Form 10-K, the words "estimate," "anticipate," "expect," "believe," and similar expressions are intended to be forward-looking statements.

For More Information Contact:
Media         
The Guitammer Company      
614) 898-9370        
media@guitammer.com  

- financial tables follow -

 

                                                            
THE GUITAMMER COMPANY

CONSOLIDATED BALANCE SHEETS



 (unaudited)



 June 30,

December 31,


2013

2012

ASSETS



Current assets



    Cash and cash equivalents

$                 472.693

$                 79,136

    Accounts receivable, net

138,237

21,011

    Inventory

542,145

629,251

    Prepaid expenses and other current assets

43,290

131,639

                Total current assets

1,196,365

861,037




Property and equipment, net

9,986

12,208

Deferred financing costs, net

48,336

58,336

Other assets, net

25,126

28,780

                Total Assets

$              1,279,813

$                  960,361



LIABILITIES AND STOCKHOLDERS' DEFICIT


Current liabilities



    Line of credit

$                     39,523

$                   39,523

    Accounts payable

632,111

742,451

    Accrued expenses

415,637

459,168

    Deferred revenue

74,945

129,385

    Current portion of long-term debt – related parties

834,352

517,124

    Current portion of long-term debt – non-related parties

556,998

554,124




                Total current liabilities

2,553,566

2,441,655




Long‑term debt, net of current portion – related parties

-

317,348

Long‑term debt, net of current portion – non-related parties

347,631

391,018

Total Liabilities

2,901,197

3,150,021




Commitments

-

-




Stockholders' deficit



Common stock, par value of $.001, 150,000,000 shares authorized;   75,248,998 and  68,779,482 shares issued, and outstanding at  June 30, 2013 and December 31, 2012, respectively

75,249

68,780

Additional paid‑in capital

6,793,089

5,641,492

    Accumulated deficit

(8,489,722)

(7,899,932)




Total Stockholders' deficit

(1,621,384)

(2,189,660)







Total Liabilities and Stockholders' deficit

$               1,279,813

$                   960,361


 

THE GUITAMMER COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)









For the Three Months Ended

June 30,



For the Six Months Ended

June 30,



2013


2012



2013

2012

Total revenue

$

428,183

$

343,833


$

953,610

$

1,072,971

Cost of goods sold


244,337


199,048


550,955


621,489

       Gross profit


183,846


144,785



402,655


451,482











Operating expenses










General and administrative


429,209


331,290



868,635


822,641

Research and development


22,324


20,992



23,617


72,341



451,533


352,282



892,252


894,982











                Loss from operations


(267,687)


(207,497)



(489,597)


(443,500)











Other Income (expense)










Interest expense


(46,399)


(77,915)



(100,232)


(135,652)

Interest income


33


38



39


38



(46,366)


(77,877)



(100,193)


(135,614)











Loss before provision for income taxes


(314,053)


(285,374)



(589,790)


(579,114)











Provision for income taxes


-


-



-


-

Net Loss

$

(314,053)

$

(285,374)


$

(589,790)

$

(579,114)











Basic and diluted loss per share

$

(0.004)

$

(0.006)


$

(0.008)

$

(0.009)

Basic and diluted weighted average common shares outstanding


 

72,275,294


 

64,261,754



 

70,755,969


 

62,159,967

 

SOURCE The Guitammer Company



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